In solving an earlier problem, I added $1000 in interest income to see my marginal federal tax rate.
Using the Form 1040 Qualified Dividends and Capital Gain Worksheet, line 25, I compared the tax calculation before and after the added interest income. The resulting increase in the tax was $370, or 37%, implying I am in the 37% tax bracket. [NOTE: this is before calculating the Net Investment Tax.]
However, my AGI on Form 1040-SR (Line 33) is far below the $628,301 floor for the 37% tax bracket.
Why is my tax being calculated for the higher 37% tax bracket?
